According to a report from Yahoo Finance, FedEx has announced a new reusable packaging system for business-to-business clients. The collapsible box is designed to withstand numerous shipping cycles and allows retailers to move away from standard corrugated boxes.

Read also: FedEx Invests $250M in New Navi Mumbai Cargo Hub

The system is intended for controlled environments like fulfillment centers or store restocking operations. It is built to integrate with automated conveyor systems and delivery vans without complicating existing handling processes for retailers.

FedEx developed this packaging in partnership with a provider specializing in circular logistics, Returnity. The box can carry a significant weight of goods and has undergone testing with several North American businesses.

During pilot programs, participating companies experienced benefits including quicker unpacking, better labor efficiency, more organized storage areas, and fewer damaged items. The packaging is now available in the United States, with plans to offer it in Australia and Europe soon.

The company states that this modern packaging can reduce packaging expenses substantially for each use cycle. Integrating reusable options into standard parcel networks has historically been challenging due to operational fit and cost.

FedEx management has indicated a strategic focus on business logistics and returns operations, which are seen as offering stronger profitability compared to standard residential delivery services.

Source: IndexBox Market Intelligence Platform